Chennai, Jul 12 (IANS): The Reserve Bank of India (RBI) on Tuesday fined Ola Financial Services Private Ltd over Rs 1.67 crore for non-compliance of regulations.

Announcing the penalty of Rs 1,67,80,000, the RBI said Ola Financial Services did not comply with its Know Your Customer direction.

The penalty has been imposed in exercise of powers vested in the central bank under Section 30 of the Payment and Settlement Systems Act, 2007.

"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers," the RBI said.

According to it, Ola Financial Services was non-compliant with the directions issued by the RBI on KYC requirements.

Accordingly, notice was issued to the entity advising it to show cause as to why penalty should not be imposed for non-compliance with the directions, the RBI said.

After considering Ola Financial Services' response, the RBI concluded that the charge of non-compliance of its directions was substantiated and warranted imposition of monetary penalty.